It is a good time to buy a home, but that doesn’t mean that it will be easy. Buying a home can be a stressful time, even when it turns out to go smoothly. Here are three things that new home buyers need to know.
Where the Professionals Are
Having the right team of professional working for you can really mean the difference between getting a great deal and getting disappointment. From a real estate agent to a home inspector, always get plenty of references and use them, and research the companies and team members that you will be using.
We’ve had good experiences and bad experiences with professionals, as most people have. You don’t want to make a stressful situation even more hair raising than it has to be.
What the Best Rates Are
Another bit of research to do is to find out where the best loan rates exist. A couple of differences in percentage points can mean the difference in thousands of dollars over the life of your loan. Right now, banks and lending agencies are very competitive, so look around and make the best decision for your situation. Getting a good rate on a 15 year instead of 30 year loan is the ideal.
Thanks to the online world, comparing rates is easier than ever. Just be sure to be aware of hidden fees that may calculate into the cost of the loan.
What You Can Afford
Just because the loan officer says that you can afford a monthly payment doesn’t mean that you actually can. A good way to test the waters is to calculate the loan payment and put that money aside for six months. Can you live on the remaining part of your income? Do you ever have to tap into that “mortgage payment?” Also take into consideration any taxes that might be escrowed into the payment.
If you are buying a fixer upper, have you accounted for the additional cost involved with getting the house livable for you?